SAN FRANCISCO--(BUSINESS WIRE)--McKesson Corporation (NYSE:MCK) today announced that it has signed a
definitive agreement to purchase RxCrossroads, a provider of tailored
services to pharmaceutical and biotechnology manufacturers, from CVS
Health Corporation (NYSE:CVS).
The transaction is valued at $735 million, or approximately $635 million
net of the present value of incremental cash tax benefits, and will be
funded by cash on hand. The acquisition is expected to close in the
fourth quarter of Fiscal 2018, subject to customary closing conditions,
including necessary regulatory clearances.
This acquisition will enhance McKesson’s existing commercialization
solutions for manufacturers of branded, specialty, generic and
biosimilar drugs, including comprehensive patient support (“hub”)
services, custom pharmacy solutions and third-party logistics, allowing
McKesson to grow its end-to-end offerings for manufacturers. In
addition, the acquisition will add plasma logistics to McKesson’s
manufacturer services, complementing the company’s established
customer-facing plasma offerings.
RxCrossroads’ focus on manufacturers and the patients they serve,
including adherence support, and streamlining the process from product
launch and through a course of therapy, aligns with McKesson’s approach
to achieve better patient outcomes through efficiency and coordination
across the supply chain, and throughout the patient journey.
“McKesson’s acquisition of RxCrossroads is another example of our
continued focus on expanding and enhancing solutions for our biopharma
manufacturer partners to deliver better patient support and better
health outcomes,” said John Hammergren, chairman and chief executive
officer, McKesson Corporation. “This investment will strengthen our
existing best-in-class solutions, including hub services and patient
assistance programs, while establishing new logistics services to plasma
manufacturers, which allows us to serve biopharma companies of all sizes
and throughout the product life cycle.”
Following the close of the transaction, RxCrossroads will become part of
the company’s McKesson Specialty Health business. McKesson expects the
impact of this transaction to be approximately 20 cents accretive to
adjusted earnings per diluted share by the third year following the
close of the transaction.
About McKesson Corporation
McKesson Corporation, currently ranked 5th on the FORTUNE
500, is a global leader in healthcare supply chain management solutions,
retail pharmacy, community oncology and specialty care, and healthcare
information technology. McKesson partners with pharmaceutical
manufacturers, providers, pharmacies, governments and other
organizations in healthcare to help provide the right medicines, medical
products and healthcare services to the right patients at the right
time, safely and cost-effectively. United by our ICARE shared
principles, our employees work every day to innovate and deliver
opportunities that make our customers and partners more successful — all
for the better health of patients. McKesson has been named the “Most
Admired Company” in the healthcare wholesaler category by FORTUNE, a
“Best
Place to Work” by the Human Rights Campaign Foundation, and a top military-friendly
company by Military Friendly. For more information, visit www.mckesson.com.
About RxCrossroads®
RxCrossroads provides hub service programs encompassing reimbursement
support, integration with network pharmacies, patient adherence
programs, specialty logistics services, sales operations support and
mail-order pharmacy services to pharmaceutical, biotechnology and
medical device manufacturers. Through its complement of capabilities,
RxCrossroads' solutions incorporate high-touch services that provide a
consistent patient, prescriber and client experience. RxCrossroads
information technology platform integrates information that provides a
complete picture for service program analysis. For more information,
visit www.rxcrossroads.com.
Adjusted Earnings
McKesson separately reports financial results on the basis of Adjusted
Earnings. Adjusted Earnings is a non-GAAP financial measure defined as
GAAP income from continuing operations, excluding amortization of
acquisition-related intangible assets, acquisition-related expenses and
adjustments, Last-In-First-Out (“LIFO”) inventory-related adjustments,
gains from antitrust legal settlements, restructuring charges, and other
adjustments.
Risk Factors
This press release includes “forward-looking statements” within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of
the Securities Exchange Act of 1934, as amended, that are subject to
risks and uncertainties and other factors. All statements other than
statements of historical fact are statements that could be deemed
forward-looking statements, including statements regarding the ability
to complete the transaction considering the various closing conditions;
the expected benefits and costs of the transaction; any projections of
earnings, revenues or other financial items; any statements of the
plans, strategies and objectives of management for future operations;
any statements regarding product or service development, extensions or
integration; any statements of expectation or belief; any statements
regarding general industry conditions and competition; any statements
regarding economic conditions; and any statements of assumptions
underlying any of the foregoing. Risks, uncertainties and assumptions
include risks related to the timing or ultimate completion of the
transaction, as the transaction is subject to certain closing
conditions, including receipt of all necessary regulatory clearances;
the possibility that expected benefits may not materialize as expected;
McKesson’s ability to successfully implement integration strategies; as
well as the ability to ensure continued performance or market growth of
the products and services of RxCrossroads. These risks, uncertainties
and other factors, and the general risks associated with McKesson’s
business described in the reports and other documents filed with the
Securities and Exchange Commission, could cause actual results to differ
materially from those referred to in the forward-looking statements. All
forward-looking statements are based on information currently available
to McKesson and are qualified in their entirety by this cautionary
statement. Except as required by law, McKesson assumes no obligation to
update any such forward-looking statements or other statements included
in this press release.